Analytically, this study employs descriptive statistical to. Cashless economy seems synonymous to canada and sweden as manifested in study of forex bonuses 2017. Such a large and unexpected policy change naturally carries with it a large collateral damage at least in the short run. Cashless is a word which literally means having no cash but in todays world, it refers to using digital form of payments instead of cash for payment of various expenses or transactions done by the individual. India continues to be determined by the use of cash. K lecturer department of commerce and management field marshal k. Several powerful forces are behind the move to a cashfree world, including governments and large financial services companies. The cost of printing currency notes and minting of coins can also be.
Such a cashless economy is recognizable by encouraging electronic money mechanism, budding financial infrastructure and disseminating digital transaction practices among public. College, panipat1,2 abstract india is moving towards a cashless economy with increased use of creditdebit cards, state digital wallets, epayments. Also, cashless economy reduces the burden of carrying cash around especially preventing the carrying of change to pay during an exchange odior and banuso 2012. In this regard, restaurants have tended to attract the most notice, with salad chain. Pdf on jan 1, 2018, anand choudhary anand choudhary and others published on way towards a cashless economy, challenges and. Digital payments for rural india challenges and opportunities 35 digital payments for rural india challenges and opportunities 1s. Cashless economy a cashless economy is one in which all the transactions are done using cards or digital means. Pdf on jan 1, 2018, anand choudhary anand choudhary and others published on way towards a cashless economy, challenges and opportunities find, read and cite all the research you need on. Challenges in making india a cashless economy large part of the population is still outside the scope of net banking like use of credit or debit cards, making transactions using mobile phones, and using the internet to pay bills they are not in a position to reduce its dependence on cash. D department of accountancy, university of nigeria nsukka. Pdf on way towards a cashless economy, challenges and. On the other hand, the minister of finance, in the 2016 budget speech, spoke about the idea of making india a moneyless society, with the aim of.
Challenges smes face in going cashless merchants say adopting epayments can be costly, especially for small players, and cashless payments are not yet a. Cashless economy and financial statement reporting in nigeria emengini, steve emeka ph. However, the path towards a truly cashless economy faces a lot of challenges as a large part of the population continues to remain outside the banking net and. Sc department of banking and finance, university of nigeria nsukka abstract. Some also argued that, while the issue has been studied pdf, britain still doesnt have a formal. This study examines the implications of cashless banking, with a view to exposing the possible challenges and prospects it poses to the nigerian economy whilst employing aggregated approach. Cashless economy and digitalization by pooja maurya ssrn. Pdf on jul 25, 2018, preeti garg garg and others published study on introduction of cashless economy in india 2016. Managing the transition to a cashless economy in nigeria. Cashless economy brings a lot more financial inclusion for the.
This article examined development and challenges of cashless policy in. The study expatiated on the effectiveness and challenges of the cbn cashless policy on rural business development using zenith bank as a point of reference. India faces many challenges in setting up a cashless economy like. What are the biggest challenges of india going cashless. This paper also studies the challenges in front of the government to establish cashless economy in the country. This study seeks to point out the prospects and challenges. The main objective of the study is to present the current status of india in usage of. Mipma lecturer, department of accountancy, enugu state university of technology esut enugu, nigeria. The advantages and disadvantages of a cashless economy. In cashless economy transactions take place through digital mode. There are a number of challenges associated with a cashless society, and until they can be overcome, a 100 percent cashfree economy will still be a long way off.
A cashless or a digital economy will require all the residents to have a bank account. These worries may not be entirely without foundation. Cashless policy could often be affected by physical challenges such as high rate of illiteracy, inadequate sensitizationeducation of the benefits of cashless policy, and inadequate logistics such as the provision of internet connections in commercial areas, computers and point on sale pos machines. The cashless economy is politically complicated, especially in developing economies. Currency notes in india are issued and controlled by reserve bank of india. Indias march towards cashless economy challenges and. Cashless economy refers to all transactions made by card, online or mobile. Gone are the days of heavy pockets stuffed with messy bills and clunky coins. A year after note ban, cashless economy is still a distant dream the number and value of cashless transactions, understandably, shot up right after the note ban, and has now come down to predemonetisation levels.
Issues and challenges 23 availability will be lowered. Seemingly the biggest advantage of a cashless economy is increased efficiency for both merchants and customers. Opportunities and challenges with special reference to kodagu district of karnataka ms. Challenges in making india a cashless economy large part of the population is still outside the scope of net banking like use of credit or debit cards, making transactions using mobile phones, and using the internet to pay bills they are not in a position to reduce. The study has been carried out based on the collection of the. In a cashless economy, electronic channels like debit card, credit card, electronic merchants, payments such as imps are the primary modes of transactions. However, there are certain challenges even in cashless transactions. Study on introduction of cashless economy in india.
Even critics of the mainstream financial system and governmentissued currencies favor doing away with cash. Initiatives by the government indian government is also taking steps to promote digital transactions. The paper discussed the effects of cashless policy on the nigerian economy, how it was kickstarted in lagos, means of payments both manual and electronic, positive and negative effects of cashless policy, benefits to the economy and stakeholders, suggestions were made. To find out the effects of the effects of the cashless transactions and its impact on indian economy primary and secondary methods are used.
Given the sheer size the decision to withdraw 85% of the cash in circulation has thrown india into disarray. The government is working at various levels to reduce the dependence on cash. A year after note ban, cashless economy is still a distant. An increasing worry for many is the security of cashless. The research examined development and challenges of cashless policy in indian economy and determined its effect on business transactions and financial reporting. Greater usage of digital payments will save trillions of rupees for the. Illegal activities will also stop over a period of time.
Rbis payment and settlement vision document 2018 gives objectives and guidelines towards cashless economy. Abstract india is moving towards a cashless economy with increased use of creditdebit. Any purchase or payment made without cash, consider being a cashless economy a cashless economy comes into the picture when we are using debitcredit cards, net banking, mobile banking, and ewallet for our daily expenses. On the night of november eighth, 2016 in a television address to the nation, the hon. However, the cost of cash to nigeria financial system is high and increasing. With the help of such an economy, the circulation of liquid money is more or less reduced. The uk is going cashless and, like most of the world, has no plan for what happens next. Cashless economy significance of cashless economy in. Pdf study on introduction of cashless economy in india. The effectiveness and challenges of the cbn cashless.
Pdf in an attempt to curbout black money, money laundering, and to have a sound economy, the central government of india has embarked. In order to understand this term better lets look at advantages and disadvantages of cashless economy. Challenges and prospects for cashless transaction economy. Also, since digital transactions can be easily tracked, the incidences of tax evasion will reduce drastically and in the long term will help the. Such a cashless economy is realisable by promoting electronic money instruments, developing financial infrastructure and spreading digital transaction habits among people. While some economies are much further along in the establishment of cashless alternatives, potential challenges still exist for the nigerian banks and polity in this regard the fragmented nature of the nigerian industry could limit the speedy adoption of cashless alternatives in nigeria. Cashless economy leads to digitization which is tech savvy and time saving. It is one of the trending and emerging concepts, which is regarded by eminent economists as the best form of modern economy.
Cashless economy challenges and opportunities in india. Pm modi explains how cashless economy will help digital india push, watch video oneindia news duration. Vishal gauttam namita goyal abstract the rbi and government are making several e. Narendra modi made an announcement, informing the people that a policy has been enacted by the government of india of demonetizing rs. This will lead to higher financial inclusion rates and will also help build a bridge between bharat and india.
Kodagu is a rural region with most of the economy based on agriculture, plantation and forestry. Cashless economy is an economic system where small amount of cash is used in transactions. Impact of cashless society for the economic growth in india. Challenges and prospects 208 direction of cashless economy. Study on introduction of cashless economy in india 2016. They can reduce costs, as they no longer need the manual accounting work to be done. T abstract on november 8, 2016 india has seen a few historic announcements from the prime minister office in relation to cancelling the high denomination of rs. But from the perspective of business and technology, its clearly more efficient and productive. Cashless economy, demonetization, digital wallet, electronic payments, point of sales cash to cashless economy. Nevertheless, a growing number of consumerfacing companies are switching over to a cashless operation. India has been a cashdependent economy, with 9798% of all transactions still being conducted in cash. The study examines the impact of cashless policy on the development of nigerian economy. Jayachandranmint making india a cashless economy 4 min read. A cashless society might sound like something out of science fiction, but were already on our way.
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